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0002| SENATE BILL 71
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0003| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0004| INTRODUCED BY
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0005| PATRICK H. LYONS
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0006|
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0007|
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0008|
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0009| FOR THE MORTGAGE FINANCE AUTHORITY ACT OVERSIGHT COMMITTEE
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0010|
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0011| AN ACT
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0012| RELATING TO HOUSING; PROVIDING FOR THE CONSOLIDATION OF
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0013| HOUSING PROGRAMS; RATIFYING THE TRANSFER OF CERTAIN HOUSING
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0014| PROGRAMS TO THE NEW MEXICO MORTGAGE FINANCE AUTHORITY;
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0015| CHANGING THE DESIGNATION OF THE STATE HOUSING AUTHORITY;
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0016| AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978 TO
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0017| MAKE STATUTORY PROVISIONS CONSISTENT WITH THE TRANSFER OF
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0018| PROGRAMS.
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0019|
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0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021| Section 1. Section 9-15-4 NMSA 1978 (being Laws 1983,
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0022| Chapter 297, Section 4, as amended) is amended to read:
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0023| "9-15-4. DEPARTMENT ESTABLISHED.--There is created in
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0024| the executive branch the "economic development department".
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0025| The department shall be a cabinet department and shall consist
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0001| of, but not be limited to, [seven] six divisions as
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0002| follows:
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0003| A. the administrative services division;
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0004| B. the economic development division;
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0005| C. the New Mexico film division;
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0006| D. the technology enterprise division;
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0007| E. the trade division; and
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0008| [F. the state housing authority; and
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G.] F. the office for space commercialization."
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0010| Section 2. Section 9-15-7.1 NMSA 1978 (being Laws 1983,
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0011| Chapter 296, Section 21, as amended) is amended to read:
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0012| "9-15-7.1. ADDITIONAL PLANNING DUTIES OF SECRETARY [OF
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THE ECONOMIC DEVELOPMENT DEPARTMENT].--The secretary [of the
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economic development department], in addition to other
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0015| duties, shall:
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0016| A. serve as staff to the governor's rural
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0017| development council;
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0018| [B. provide housing information and technical
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assistance to units of local government and housing
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development associations;
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C. administer the low-income elderly housing
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rehabilitation program;
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D. provide training to groups participating in
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housing management programs funded by housing and urban
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development and the farmers home administration;] and
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0001| [E.] B. serve as lead agency in coordination
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0002| of the census program at the state data center."
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0003| Section 3. Section 11-1-2 NMSA 1978 (being Laws 1961,
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0004| Chapter 135, Section 2, as amended) is amended to read:
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0005| "11-1-2. DEFINITIONS.--As used in the Joint Powers
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0006| Agreements Act:
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0007| A. "public agency" means the federal government or
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0008| any federal department, [or] agency or instrumentality;
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0009| this state, an adjoining state or any state department, [or]
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0010| agency or instrumentality; an Indian tribe or pueblo; a
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0011| county, municipality, public corporation or public district of
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0012| this state or an adjoining state; [it also specifically
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includes any state] a New Mexico educational institution
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0014| specified in Article 12, Section 11 of the constitution of New
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0015| Mexico; and [any] a New Mexico school district [in this
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state];
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0017| B. "agreement" means a written contractual
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0018| agreement entered into between two or more public agencies
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0019| subject to any constitutional or legislative restriction
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0020| imposed upon any of the contracting public agencies [provided
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that nothing in], but the Joint Powers Agreements Act
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0022| [shall be construed to] does not authorize [any] an
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0023| interstate water supply agreement or [to] limit the powers
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0024| of [any] an interstate water compact commission, the
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0025| interstate stream commission or the state engineer [or to],
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0001| and it does not limit the powers of [any] a state agency
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0002| or political subdivision to enter into agreements with the
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0003| interstate stream commission or the state engineer;
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0004| C. "bonds" means revenue bonds;
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0005| D. "bondholder" means any person who [shall be]
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0006| is the bearer of any outstanding [revenue] bond or the
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0007| owner of bonds [which shall] that are at the time [be]
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0008| registered to other than the bearer;
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0009| [E. "governing body" means the board or
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commission provided for under the Joint Powers Agreements Act;
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F.] E. "indenture" means the instrument
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0012| providing the terms and conditions for the issuance of the
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0013| bonds and may be a resolution, order, agreement or other
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0014| instrument; and
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0015| [G. "project" means the building or other
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structure or improvements and all facilities appurtenant
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thereto or provided therefor to be financed by bonds issued
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pursuant to the Joint Powers Agreements Act]
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0019| F. "instrumentality" means a public corporate
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0020| entity created by state law but which is not subject to the
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0021| general laws of the state and is not a state agency or
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0022| department."
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0023| Section 4. Section 11-3A-6 NMSA 1978 (being Laws 1994,
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0024| Chapter 132, Section 6, as amended) is amended to read:
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0025| "11-3A-6. POWERS OF AUTHORITY IN BOARD OF
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0001| COMMISSIONERS--APPOINTMENT OF BOARD OF AUTHORITIES--TERMS.--
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0002| A. The powers of each regional authority shall be
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0003| vested in its board of commissioners as the board may be
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0004| constituted, from time to time. The board of commissioners of
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0005| the authority for each of the seven regions shall consist of
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0006| seven commissioners who shall be residents of the region for
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0007| which the authority is created and appointed by the governor.
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0008| Appointments shall be for terms of four years or less and
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0009| shall be made so that the terms of not more than two
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0010| commissioners on each board expire on July 1 of each year.
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0011| Vacancies shall be filled for the unexpired term.
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0012| Commissioners shall serve until their successors have been
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0013| appointed.
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0014| B. The members of the boards of commissioners may
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0015| receive per diem and mileage as provided in the Per Diem and
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0016| Mileage Act but shall receive no other compensation,
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0017| perquisite or allowance. Each board of commissioners shall
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0018| select a chairman and vice chairman from among its members.
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0019| Each board may employ necessary agents and employees and set
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0020| the salaries of the agents and employees. Each board may
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0021| delegate to its agents or employees such duties as the board
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0022| deems proper. A regional planning and development district,
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0023| created pursuant to the Planning District Act, may provide
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0024| technical staff for [a regional housing] an authority.
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0025| Four commissioners shall constitute a quorum of a board for
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0001| the purpose of conducting its business and exercising its
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0002| powers and for all other purposes. Action may be taken by an
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0003| authority upon a vote of a majority of the commissioners
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0004| present. Each board shall organize itself at its annual
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0005| meeting each even-numbered year. A board may authorize an
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0006| authority to employ a secretary, who shall be executive
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0007| director and who shall be removable only for cause, and
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0008| technical experts and other officers, attorneys, agents and
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0009| employees, permanent and temporary, as the authority requires;
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0010| to determine employee and contractor qualifications, duties
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0011| and compensation; and to delegate to one or more employees or
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0012| contractors the powers or duties that the board deems proper.
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0013| C. The financial affairs of every regional
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0014| authority and any nonprofit corporation created by an
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0015| authority shall be thoroughly examined and audited annually by
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0016| the state auditor, by personnel of his office designated by
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0017| him or by auditors approved by him. The audits shall be
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0018| conducted in accordance with generally accepted auditing
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0019| standards. Each regional authority shall submit to the state
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0020| auditor, the department of finance and administration, the
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0021| state housing authority [of the economic development
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department] and the legislative finance committee, within
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0023| thirty days following the receipt of the audit by the
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0024| authority, a copy of the annual audit."
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0025| Section 5. Section 48-10-3 NMSA 1978 (being Laws 1987,
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0001| Chapter 61, Section 3, as amended) is amended to read:
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0002| "48-10-3. DEFINITIONS.--As used in the Deed of Trust
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0003| Act, unless the context otherwise requires:
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0004| A. "beneficiary" means the person named or
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0005| otherwise designated in a deed of trust as the person for
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0006| whose benefit a deed of trust is given or his successor in
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0007| interest;
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0008| B. "qualified construction project" means a low-
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0009| income housing project of a regional, county or municipal
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0010| housing authority or a qualified nonprofit organization;
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0011| C. "qualified nonprofit organization" means an
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0012| organization that is certified by the state housing authority
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0013| as having been granted exemption from federal income tax
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0014| pursuant to Section 501(c)(3) or (4) of the Internal Revenue
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0015| Code of 1986, as amended, and that includes as one of its
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0016| exempt purposes the fostering of low-income housing;
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0017| D. "contract" means an agreement between or among
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0018| two or more persons, including, without limitation, a note,
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0019| promissory note, guarantee or the terms of any deed of trust;
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0020| E. "credit bid" means a bid made by the
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0021| beneficiary in full or partial satisfaction of the contract
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0022| that is secured by the deed of trust. A credit bid may only
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0023| include an amount owing on a contract with interest secured by
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0024| liens, mortgages, deeds of trust or encumbrances that are
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0025| superior in priority to the deed of trust and which liens,
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0001| mortgages or encumbrances, whether recourse or nonrecourse,
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0002| are outstanding as provided in the contract or as provided in
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0003| the deed of trust, together with the amount of other
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0004| obligations provided in or secured by the deed of trust and
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0005| the costs of exercising the power of sale and the trustee's
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0006| sale, including the fees of the trustee and reasonable
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0007| [attorneys'] attorney fees actually incurred by the
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0008| trustee and the beneficiary;
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0009| F. "parent corporation" means a corporation that
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0010| owns eighty percent or more of each class of the issued and
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0011| outstanding stock of another corporation or, in the case of a
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0012| savings and loan association, eighty percent or more of the
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0013| issued and outstanding guaranty capital of the savings and
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0014| loan association;
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0015| G. "person" means an individual or organization;
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0016| H. "deed of trust" means a document by way of
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0017| mortgage in substance executed in conformity with the Deed of
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0018| Trust Act and in conformity with Section 47-1-39 NMSA 1978
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0019| granting or mortgaging trust real estate to a trustee
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0020| qualified under the Deed of Trust Act to secure the
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0021| performance of a contract, but does not include a deed of
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0022| trust that encumbers in whole or in part trust real estate
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0023| located in New Mexico and in one or more other states;
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0024| I. "junior encumbrancer" means a person holding a
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0025| lien, mortgage or other encumbrance of record evidencing an
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0001| interest in the trust real estate that is subordinate in
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0002| priority to the deed of trust and includes a lienholder, a
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0003| mortgagee, a seller and a purchaser as provided in a real
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0004| estate contract and, where the context is applicable, escrow
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0005| agents as provided in a real estate contract;
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0006| J. "low-income household" means a household that
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0007| the state housing authority certifies is a household with
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0008| income at or below eighty percent of the state's median
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0009| household income;
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0010| K. "low-income housing project" means a housing
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0011| project that the state housing authority certifies is housing
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0012| for low-income households;
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0013| L. "state housing authority" means the New Mexico
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0014| mortgage finance authority;
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0015| [L.] M. "trust real estate" means any legal,
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0016| equitable, leasehold or other interest in real estate,
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0017| including the term "real estate" as defined in Section 47-1-1
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0018| NMSA 1978, which is capable of being transferred whether or
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0019| not the interest is subject to any prior mortgages, deeds of
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0020| trust, contracts for conveyance of real estate, real estate
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0021| contracts or other liens or encumbrances; provided, however,
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0022| trust real estate shall not include:
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0023| (1) any dwelling and the underlying real
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0024| estate designed for occupancy by one to four families,
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0025| including mobile homes and condominiums, except when occupancy
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0001| is designed for low-income households;
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0002| (2) any real estate used by the trustor for
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0003| farming operations, including farming, tillage of the soil,
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0004| dairy farming, ranching, production or raising of crops,
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0005| poultry or livestock, and production of poultry or livestock
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0006| products in an unmanufactured state; or
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0007| (3) oil and other liquid hydrocarbons, or
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0008| gas, including casinghead gas, condensates and other gaseous
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0009| petroleum substances, or coal or other minerals in, on or
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0010| under real estate, including patented and unpatented mining
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0011| claims, unless such minerals have not been severed from and
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0012| are included with the surface estate.
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0013| The character of trust real estate shall be determined as
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0014| of the date of the deed of trust covering the trust real
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0015| estate;
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0016| [M.] N. "trustee" means a person qualified as
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0017| provided in the Deed of Trust Act. The obligations of a
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0018| trustee to the trustor, beneficiary and other persons are as
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0019| provided in the Deed of Trust Act, together with any other
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0020| obligations specified in the deed of trust. Both the
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0021| beneficiary and the trustee have all the powers of a mortgagee
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0022| as provided by law; and
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0023| [N.] O. "trustor" means the person or his
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0024| successor in interest granting or mortgaging trust real estate
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0025| by a deed of trust as security for the performance of a
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0001| contract and is the same as a mortgagor granting or mortgaging
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0002| real estate by way of mortgage as provided by law."
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0003| Section 6. A new section of the Mortgage Finance
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0004| Authority Act, Section 58-18-5.5 NMSA 1978, is enacted to
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0005| read:
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0006| "58-18-5.5. [NEW MATERIAL] ADDITIONAL POWERS OF AUTHORITY--
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0007| AUTHORITY DESIGNATED AS SINGLE STATE HOUSING AUTHORITY--APPLICATION
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0008| FOR AND RECEIPT OF FEDERAL FUNDS--ADMINISTRATION OF HOUSING
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0009| PROGRAMS.--In addition to the powers granted the authority pursuant
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0010| to Sections 58-18-5 and 58-18-5.3 NMSA 1978, the authority:
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0011| A. is designated as the state housing authority for all
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0012| purposes;
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0013| B. shall make application for federal housing funds and
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0014| programs;
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0015| C. shall administer federal and state housing programs
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0016| and federal tax credit provisions associated with those programs;
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0017| D. shall receive and expend funds pursuant to
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0018| applicable federal housing laws, federal housing regulations, the
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0019| provisions of the Mortgage Finance Authority Act and regulations
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0020| adopted pursuant to that act;
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0021| E. shall administer the following housing programs that
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0022| were previously transferred to it by executive order, the
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0023| provisions of which are ratified:
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0024| (1) the federal HOME program;
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0025| (2) the federal low-income housing tax credit
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0001| program;
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0002| (3) the federal emergency shelter grant programs;
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0003| (4) the state homeless program;
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0004| (5) the federal and state weatherization programs
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0005| and that part of the low-income home energy assistance program
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0006| authorized for weatherization; and
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0007| (6) the state safe water program;
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0008| F. shall assist with technical consultation in
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0009| connection with housing components of the community service block
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0010| grant and community development block grant programs that are
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0011| administered by the human services department and the department of
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0012| finance and administration, respectively;
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0013| G. shall not receive direct appropriations of state
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0014| funds from the legislature, and, if a program for which the
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0015| authority is granted the power and has the duty to administer
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0016| involves the appropriation or expenditure of state funds, the
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0017| authority is granted specific power to enter into a joint powers
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0018| agreement with the department of finance and administration
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0019| pursuant to the Joint Powers Agreements Act; and
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0020| H. may:
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0021| (1) exercise oversight over regional housing
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0022| authorities to achieve efficiency and coordination of state and
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0023| regional housing programs;
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0024| (2) conduct reviews and audits of regional housing
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0025| authorities' programs; and
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0001| (3) upon request of a regional housing authority,
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0002| provide appropriate technical assistance."
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0003| Section 7. REPEAL.--Sections 11-4-1 through 11-4-8 NMSA 1978
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0004| (being Laws 1975, Chapter 102, Sections 1 through 8, as amended)
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0005| are repealed.
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0006| Section 8. EFFECTIVE DATE.--The effective date of the
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0007| provisions of this act is July 1, 1998.
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0008|
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